Property auctions are gaining traction in Pakistan, where high-value private and government owned properties go under the hammer. A significant number of foreclosed properties (that were used as collateral and are being sold by banks and other lending institutions to recover defaulted loans), as well as those located in remote areas that are difficult to sell through conventional methods, can be purchased at such auctions.

Properties at these auctions are usually priced five to 10% less than their current market value, and buyers usually do not have to pay third party commissions to agents and dealers, which makes them more economical in the long run. Continue reading →

Urdu Bazaar Located near the iconic Radio Pakistan building and accessible via MA Jinnah Road, Urdu Bazaar began life as a cluster of bookstalls in the early 1950s. Over the decades it has morphed into the largest wholesale market for books in Karachi. Continue reading →

Located on the west bank of the River Indus, Sukkur is Sindh’s third largest city and an important commercial hub. Retail spaces are limited and in high demand; purchase prices and rental rates appreciate by 20 to 25% every year.

Here are Sukkur’s top three commercial areas that are attracting investment from across Pakistan:

Sarafa Bazaar: Located along Sarafa Bazaar Road, Sarafa Bazaar is best known for its myriad jewellery shops, making it Sukker’s largest ‘gold market’. Shops selling fabric, stationery and handicrafts are located there as well as well-known eateries such as Golden Chicken Restaurant and Kashmir Ice Cream Corner. Commercial property options include standalone shops and retail space in low-rise buildings; parking space is limited.

If you are renovating a house, apartment or a commercial space, you will need to obtain written approval from the governing authority of the area in which the property is located before beginning the renovation process.

Approval usually takes about a week to process, and in order to obtain it, property owners must submit a written application that specifies the projected renovations (even if they are minor ones, such as altering the façade of a house marginally) along with the following documents:

A trend in real estate that has emerged in the last few years is of renting residential property (be it a house or an apartment) for a short period ranging between one and nine months. This is primarily because an increasing number of people looking for temporary accommodation are choosing to rent a house or apartment instead of opting for a guesthouse or hotel.

Here is a detailed look at residential property rented for short periods of time:

1. Rental rates are usually 10 to 20% lower compared to hotels and guesthouses.

2. Prices vary according to the season; rates are usually higher during the winter and summer months when the demand for short term rentals increases due to the wedding and holiday season. In some cases, corporate discounts and special family rates are available.

Investing in commercial property is an option that many investors consider from time to time as a way to expand their asset portfolios. Commercial property options for investors usually include office spaces, retail spaces, standalone shops and
vacant plots. Continue reading →

According to the regulations of the State Bank of Pakistan, home loans can be sanctioned to individuals to buy built-up properties (e.g. houses and apartments) and plots, constructing a house and for renovating an existing structure.

The loan repayment period varies between one and 25 years; loans are required to be paid back via equal monthly instalments.

Most homeowners seek to increase the value of their property by upgrading the exterior and renovating the interior. Although home improvements affect property value, the presence of certain amenities increases its value by an estimated 10 to 15%. Similarly, demand for the property increases by approximately 30%.

This is why the presence of the following amenities should be taken into consideration when purchasing residential property: Continue reading →

An increasing number of people are opting to live in apartments because compared to independent houses, they are relatively easier to maintain and are more secure.

However, there are a few factors to keep in mind when choosing an apartment with regard to structure and design, especially if you intend to sell it at a later stage. Good infrastructure for the entire complex and a well planned architectural layout increases value, while substandard construction, poor architectural design and finish decrease the value by five to 15%.

Here are a few things to look out for when purchasing an apartment:

Façades should be completed using high quality material such as stone or brick. Not only are these materials aesthetically pleasing, they require less maintenance.

Parking space must be allocated to each apartment within the complex; parking space should ideally be covered. There should also be provisions to accommodate additional cars for guests.

Separate entry and exit gates should be in place to manage traffic flow and keep the complex uncongested.

Avoid apartment complexes built parallel to each other; this will compromise your privacy. Opt for complexes built in a circular or oval shape; they provide more privacy.

Staircases should face the east to allow maximum sunlight; they should be at least three feet wide. Separate service/emergency staircases are ideal.

Windows, especially those in bathrooms and kitchens, should allow maximum sunlight and ventilation.

Balconies and terraces should be strategically positioned; large balconies near living areas can extend entertainment space, while those near the kitchen can be used as laundry space or for growing plants.

Interior spaces should provide space saving, built-in storage space.

Fixtures and fittings should of good quality.

– Farah RizwanThe writer is an architect working at the Indus Valley School of Art and Architecture.

First published in the Real Estate section of The DAWN National Weekend Advertiser on July 8, 2012.